FCIB Credit & Collections Survey July 2024 India,
Description: FCIB Credit Collections Survey July 2024 India, Russia, Ukraine, Venezuela Are your sales primarily to new or existing customers? FCIB Credit Collections Survey July 2024 On average, what payment terms are you granting? FCIB Credit
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slide1. FCIB Credit & Collections Survey July 2024 India, Russia, Ukraine, Venezuela<br>
slide2. Are your sales primarily to new or existing customers? FCIB Credit & Collections Survey – July 2024<br>
slide3. On average, what payment terms are you granting? FCIB Credit & Collections Survey – July 2024<br>
slide4. On average, what payment terms are you granting? FCIB Credit & Collections Survey – July 2024<br>
slide5. What is the average number of days beyond terms in these countries? FCIB Credit & Collections Survey – July 2024 India
17 Russia
8 Ukraine
22 Venezuela
40<br>
slide6. Are payment delays increasing, decreasing, or staying the same? FCIB Credit & Collections Survey – July 2024<br>
slide7. Are payment delays increasing, decreasing, or staying the same? FCIB Credit & Collections Survey – July 2024<br>
slide8. The most common causes of payment delays FCIB Credit & Collections Survey – July 2024 *(i.e. customer only pays on a set day of the month) **(Russian invasion of Ukraine)<br>
slide9. The most common causes of payment delays FCIB Credit & Collections Survey – July 2024 *(i.e. customer only pays on a set day of the month) **(Russian invasion of Ukraine, corrupt elections and civil revolt)<br>
slide10. Methods used to secure payment FCIB Credit & Collections Survey – July 2024<br>
slide11. Methods used to secure payment FCIB Credit & Collections Survey – July 2024<br>
slide12. Insights from Credit Professionals India “It's a tough country to collect from, and civil actions are difficult and lengthy. Maintain strong personal relationships and very clear documentation. Use credit insurance when pay-in-advance is not available.”
“Keep a close eye on these accounts based on experience payment delays.”
“Make sure you have signed contracts (executed on both sides) and handle disputes timely.”
“Expect disputes if payment is not received in advance. Our experience is to have downgrades of materials and incomplete payments when terms extended.” FCIB Credit & Collections Survey – July 2024 Ukraine “We stopped selling, as we were not getting payments in.”
“Credit scoring & due diligence is becoming more and more important now with so many major customers failing to commit to their payments due to current situation.” Venezuela “Inherited a customer in this country. Would only have sold to them using cash in advance but the company we bought gave them open terms.”<br>
slide13. Insights from Credit Professionals Non-country-specific Advice from the survey. Know your real customer, not the Trade/Banner name but the True Legal Entity (5 C's of Credit).
Start early building a relationship with your customer, and include your salesperson - you'll make a team and teams work together.
Follow up with the customer's Procurement Dept and Finance Dept as many times as necessary.
Obtain updated credit information Look for owner and addresses verification, as changes are often not communicated by the customer. Know all you can about the customer. Pull a credit report for payment history and legal status and name verification.
With continued global inflation, war in Ukraine and high interest, you need to know your true legal customer to prevent fraud and keep your A/R secured.
It is important to know customer's payment process to avoid misunderstandings or delays due to administrative issues.
Obtain financial statements on your customers and backstop sales with credit insurance.
Ensure payment language is on the wire payments received. FCIB Credit & Collections Survey – July 2024<br>
slide2. Are your sales primarily to new or existing customers? FCIB Credit & Collections Survey – July 2024<br>
slide3. On average, what payment terms are you granting? FCIB Credit & Collections Survey – July 2024<br>
slide4. On average, what payment terms are you granting? FCIB Credit & Collections Survey – July 2024<br>
slide5. What is the average number of days beyond terms in these countries? FCIB Credit & Collections Survey – July 2024 India
17 Russia
8 Ukraine
22 Venezuela
40<br>
slide6. Are payment delays increasing, decreasing, or staying the same? FCIB Credit & Collections Survey – July 2024<br>
slide7. Are payment delays increasing, decreasing, or staying the same? FCIB Credit & Collections Survey – July 2024<br>
slide8. The most common causes of payment delays FCIB Credit & Collections Survey – July 2024 *(i.e. customer only pays on a set day of the month) **(Russian invasion of Ukraine)<br>
slide9. The most common causes of payment delays FCIB Credit & Collections Survey – July 2024 *(i.e. customer only pays on a set day of the month) **(Russian invasion of Ukraine, corrupt elections and civil revolt)<br>
slide10. Methods used to secure payment FCIB Credit & Collections Survey – July 2024<br>
slide11. Methods used to secure payment FCIB Credit & Collections Survey – July 2024<br>
slide12. Insights from Credit Professionals India “It's a tough country to collect from, and civil actions are difficult and lengthy. Maintain strong personal relationships and very clear documentation. Use credit insurance when pay-in-advance is not available.”
“Keep a close eye on these accounts based on experience payment delays.”
“Make sure you have signed contracts (executed on both sides) and handle disputes timely.”
“Expect disputes if payment is not received in advance. Our experience is to have downgrades of materials and incomplete payments when terms extended.” FCIB Credit & Collections Survey – July 2024 Ukraine “We stopped selling, as we were not getting payments in.”
“Credit scoring & due diligence is becoming more and more important now with so many major customers failing to commit to their payments due to current situation.” Venezuela “Inherited a customer in this country. Would only have sold to them using cash in advance but the company we bought gave them open terms.”<br>
slide13. Insights from Credit Professionals Non-country-specific Advice from the survey. Know your real customer, not the Trade/Banner name but the True Legal Entity (5 C's of Credit).
Start early building a relationship with your customer, and include your salesperson - you'll make a team and teams work together.
Follow up with the customer's Procurement Dept and Finance Dept as many times as necessary.
Obtain updated credit information Look for owner and addresses verification, as changes are often not communicated by the customer. Know all you can about the customer. Pull a credit report for payment history and legal status and name verification.
With continued global inflation, war in Ukraine and high interest, you need to know your true legal customer to prevent fraud and keep your A/R secured.
It is important to know customer's payment process to avoid misunderstandings or delays due to administrative issues.
Obtain financial statements on your customers and backstop sales with credit insurance.
Ensure payment language is on the wire payments received. FCIB Credit & Collections Survey – July 2024<br>